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Protecting your community officials with liability insurance

Carrying liability insurance helps protect officials in the event of a lawsuit, but it is important to work with your municipal attorney to review the policy’s scope of coverage to ensure that your community’s coverage needs are met.

Posted on November 15, 2012 by Ryan Coffey, Michigan State University Extension

Does your
municipality carry liability insurance? This is definitely not a question you
want to be asking after a lawsuit has already been filed: by then it may be too
late and you will find yourself regretting that you had not done so earlier.

Liability insurance
is simply an insurance that protects against lawsuits or other similar claims
(that are covered under the policy, as outlined in the policy) arising from
injuries or damage to other people or property.

In Michigan,
municipalities are not required to carry liability insurance for all officials,
although it may be a good idea and a wise practice to carry it for them. Even
if you have a policy, you may want to review that policy to determine who is
covered, the extent of that coverage and if there are any officials not currently
covered that should be. Also, protection may vary depending on the type of
employment classification of certain officials, such as zoning administrators
and building inspectors. These types of positions tend to carry greater
liability and their actions are often the source of many lawsuits, whether
frivolous or legitimate. Several Michigan State
University Extension
training programs, including the upcoming Michigan Zoning Administrator Certificate
Program,
discuss in detail liability issues.

If your
municipality is unsure of the extent of its liability insurance or whether it
even carries liability insurance, you should contact your municipality’s
attorney to discuss options and determine which type of coverage is right for
your community. This is one phone call you will never regret!

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